Some market watchers on Twitter have emphasized that the Russell 2000
/quotes/zigman/2759624/delayedRUT and its ETF so far haven’t been able to hold above their March peaks:

But others have poked fun at the bears, pointing out that small caps have been rallying nicely since finding a bottom in mid-May:

Even before Monday’s slide, Andrew Nyquist at SeeItMarket.com and Todd Salamone at Schaeffer’s Investment Research said traders will pay particular attention this week to small caps, which are known for being more economically sensitive. Nyquist wrote:

“The small caps have always been a great indicator of investor risk tolerance in the markets. And although the RUT experienced a big sell off earlier this year, it has been battling back and may be on the verge of a breakout. BUT, as many technical investors understand, the first retest of prior highs often finds resistance. And this could slow equities down for a few days.”

Meanwhile, Salamone said the Russell 2000 “will attempt to take out its March peak, although bears are hoping for a failure to do so, putting a bearish ‘double top’ formation in play.”

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